I want to know if Espionage will remain effective in Lion...won't the OS just copy my sensitive data out of the encrypted disk image and spill it to some unencrypted directory for versioning? Where is the version data stored, in the same directory as the main file (hopefully), or somewhere like ~/Library (bad)? I definitely won't upgrade to Lion until I'm sure about this! I haven't found an answer since Lion was released, I'm hoping the Espionage folks can help as they should know the answer. Thanks in advance.
Well, I don't know about anyone else, but after upgrading to Lion, my hidden folder can no longer be "mounted' and everything appears to be gone.
My suggestion is to un-hide and remove any Espionage protection BEFORE upgrading.
This is an excellent question! Lion's versions feature is not supported by most applications at the moment, it is something developers have to choose to implement themselves. While we are researching this feature, we recommend turning on Lion's new FileVault feature, as that should encrypt the old revisions of documents that take advantages of Lion's Versions feature.
According to the research and experiments by some folks at AskDifferent, we're in good shape. The short story: In the case where the files are being stored on an encrypted .sparsebundle that resides on the same hard drive as the operating system, which is the way Espionage does things, the version files are stored on within the .sparsebundle. For more details, see the AskDifferent webpage here:
http://apple.stackexchange.com/question ... 32%2318732 (http://apple.stackexchange.com/questions/18576/do-os-x-lions-versions-and-resume-features-store-the-cached-data-for-encrypted/18732%2318732)
The only caveat I can see here is that these claims have not been directly verified by Apple or Tao Effect as of yet.
FYI, I am the original poster of this question and the question posted on AskDifferent/StackExchange. I had to create a new account because I couldn't remember my original username for this board.
I hope this information helps Espionage users feel more confident about the security of their data and the effectiveness of Espionage. I hope that the folks at Tao Effect confirm this information and then place it on their FAQ page. I think people would be more likely to use this great app if it's security of Lion's versioning is mentioned right up front.